In the first decision by the Madhya Pradesh governmet after coming to power, Chief minister Kamal Nath on signed the file, waiving the loans of farmers up to Rs 2 lakh, shortly after talking oath as the Chief Minister.

Waiving the loans of farmers has been one of the key promises made by the Congress in its manifesto for the Rajasthan, Madhya Pradesh and Chhattisgarh assembly elections.